Assist with both questions below using your professional experience and examples that are relevant.
1. Give some examples as to how inherent controls are used in an organization. Are the controls effective? Why or Why not?
2. Explain how employee communications and participation influence the effectiveness of the pay system. Give some examples of a current organization.
Some ways in which inherent controls are uses and if they are effective:
1. Inherent controls are established by setting targets for different departments and persons. These controls are effective because they help achieve performance and profitability targets. They are effective because the targets and the achieved results are easy to compare.
2. Inherent controls are established to cross-check the financial accounting of an enterprise. This is effective in making the financial statements reliable and prevents loss of resources. Usually the cross-checking helps eliminates errors and frauds.
3. Inherent controls are established by having an officer responsible for compliance. This system helps ensure that the company complies with laws and regulations and avoids damage to reputation. ...
This solution gives you a detailed discussion on Inherent Controls.